ersonalised banking powered by technology could become mainstream over the next four quarters, as banks increasingly tailor products and services to individual customers, Axis Bank MD & CEO Amitabh Chaudhry said on Wednesday.
Personalised Banking
“Already happening. In the next four quarters, I think it will become the way we do our business,” Chaudhry said while speaking at the Global Fintech Fest.
He said banks would increasingly experiment with what products to offer individual customers and when to offer them, marking a shift from standardised banking towards more personalised financial services.
On artificial intelligence, Chaudhry said its adoption may not necessarily lead to a sharp reduction in banking jobs, given the sector’s growth and relatively high employee attrition. However, employees would have to reskill themselves as technology changes the nature of jobs across the industry.
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The growing adoption of digital banking would also change the role of physical branches, rather than eliminate them immediately, he said. Axis Bank is continuing to add branches while experimenting with smaller formats, express banking desks and digital locker-only branches.
“The concept of a branch is changing. But will the number of branches come down? At some stage, I do hope it will. But the customers still want a physical location which they can see,” Chaudhry said.
FCNR Inflows
Separately, Chaudhry cautioned that the surge in Foreign Currency Non-Resident (Bank), or FCNR(B), deposits could result in “abnormal lending” as banks look to deploy the funds raised under the scheme.
“FCNR could lead to some abnormal lending because people have to deploy this. I hope they don’t do that,” he said, urging banks to remain careful about how they deploy the inflows.
The Reserve Bank of India’s measures to attract foreign currency inflows have delivered stronger-than-expected results. According to the latest RBI data, banks mobilised $127 billion through FCNR(B) deposits by August 31. Total inflows, including external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs), stood at $136 billion.
FE had earlier reported that private sector banks accounted for close to half of the FCNR(B) inflows. The scheme closed on August 31, though banks can access the RBI’s dollar swap facility until September 11.
Driven largely by FCNR(B) inflows, banking-system liquidity stood near record levels at Rs 10.5 lakh crore as of September 8, RBI data showed.
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On interest rates, Chaudhry said the West Asia crisis could strengthen the case for higher rates in India. He pointed to the narrowing interest-rate differential between India and the US, which he said had reached levels not seen in decades and remained a significant concern.
Chaudhry also made a case for consolidation in the banking sector, arguing that India needs larger banks to compete at scale.
“I do believe that India needs bigger banks. And the only way to get there is for some of the banks to come together. So if the right one comes along with the other right bank, hopefully some of that consolidation will happen,” he said.
The increasing scale required to compete could force some banks to assess whether they should continue independently or pursue mergers, he said, adding that Axis Bank has an appetite for consolidation.
This article was first uploaded on September nine, twenty twenty-six, at fifty-six minutes past ten in the night.
© The Indian Express (P) Ltd
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